War risk insurance premiums for private jet operators flying into the Gulf have soared to as much as US$50,000 per trip following the US-Israeli strikes on Iran, in some cases doubling the total cost of a single charter flight into the region, Financial Times reported over the weekend.
Underscoring the “quite significant” increased costs, Charles Robinson, founder of charter platform EnterJet, said, “We have seen instances where for a single trip the war risk insurance alone has been up to US$50,000 beyond the standard charter rate. It depends on the airport in question, the time on the ground in that airport, and various different stipulations in the insurance contract.”
The surge in war risk costs has prompted some operators to refuel outside the Gulf altogether to minimise time spent on the ground, according to brokers and operators.
While the typical war risk premium for the region sits at between US$5,000 and US$10,000, costs have climbed sharply since the conflict began on 28 February. Toby Edwards, co-chief executive officer of charter brokerage Victor, said his firm is being quoted between £10,000 and £30,000 for war risk cover, depending on the type and age of the aircraft.
Pricing is also sensitive to asset value.
“A 2020 Global 6000 is going to require a fair bit of extra insurance versus a 1991 Gulfstream GIV just through sheer valuation of the asset alone,” said Dan Hurley, co-founder of broker Global Charter.
The conflict has severely disrupted aviation across the region, with major airports in Dubai, Abu Dhabi, and Qatar closed or constrained in the opening days of fighting, leaving hundreds of thousands of passengers stranded.
Dubai Airport estimated having processed approximately one million passengers in the three weeks since hostilities began, as Emirates and other carriers have gradually restored services. An initial spike in private charter demand, with prices rising as much as threefold in the first days of the conflict when private jets were the only means of departure from airports including Muscat and Dammam, has since eased as commercial capacity returns, the report said.
Rising jet fuel costs are adding further pressure. Charter rates for large jets, which typically run at around £10,000 per hour of operation, remain significantly above pre-conflict levels despite easing from their peak, brokers said.
The disruption has extended beyond aviation, as marine insurers have repriced war risk exposures while hull underwriters issued cancellation notices. Several governments, including the US, Hong Kong, and India, have since announced state-backed support measures to ease the impact on affected industries.
